A trial balance failed to agree and the difference was entered in a suspense account. Subsequently the following errors were identified and corrected, which resulted in the balance on the suspense account being eliminated.
Discount allowed of £690 had been credited to the discount received account in error Motor expenses of £840 had been debited to the motor vehicles account in error.
The credit side of the cash book had been under-cast by £1,000 when computing the closing balance. The original difference on the trial balance that was entered in the suspense account was:
A) £380
B) £460
C) £1,220
D) £3,220
Correct Answer:
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